The CEO of Vision Values Holdings Limited (HKG:862) is Simon Lo. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Simon Lo's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Vision Values Holdings Limited has a market cap of HK$1.1b, and reported total annual CEO compensation of HK$6.1m for the year to June 2019. It is worth noting that the CEO compensation consists almost entirely of the salary, worth HK$6.0m. We looked at a group of companies with market capitalizations under HK$1.6b, and the median CEO total compensation was HK$1.8m.
It would therefore appear that Vision Values Holdings Limited pays Simon Lo more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Vision Values Holdings, below.
Is Vision Values Holdings Limited Growing?
Vision Values Holdings Limited has increased its earnings per share (EPS) by an average of 8.2% a year, over the last three years (using a line of best fit). It achieved revenue growth of 78% over the last year.
It's great to see that revenue growth is strong. And in that context, the modest EPS improvement certainly isn't shabby. I wouldn't say this is necessarily top notch growth, but it is certainly promising. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Vision Values Holdings Limited Been A Good Investment?
With a three year total loss of 5.2%, Vision Values Holdings Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
We examined the amount Vision Values Holdings Limited pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Over the last three years, shareholder returns have been downright disappointing, and the underlying business has failed to impress us. Shareholders may wish to consider further research. Although we don't think the CEO pay is too high, it is probably more on the generous side of things. Whatever your view on compensation, you might want to check if insiders are buying or selling Vision Values Holdings shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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